Oil prices traded steady despite the intensifying trade tension between the US and China. On Wednesday, The Chinese Ministry of Commerce announced a 25% tariff on $16 billion worth of U.S. goods including passenger cars and motorcycles.

This announcement came after the Trump administration confirmed a list of $16 billion worth of Chinese goods that would be hit with tariffs. China’s Ministry of Commerce said in a statement that the U.S.’s decision is “very unreasonable,” and that China has no choice but to retaliate.

In the meantime, some experts have remained optimistic that the recent trade dispute will not significantly impact the outlook of oil prices, while Iran has threatened to disrupt oil shipments through the Strait of Hormuz, which is a waterway for oil exports from the Middle East after the US activates its economic sanctions earlier on Tuesday,Among the tools include crude sanctions that will limit Iran’s oil exports from November onwards.

Oil prices could be heading for a war that is cooking between top oil producers in the Middle East and the US might play a vital role in it. National Iranian Oil Co, which is s state-run company has officially reduced its prices for September sales to Asia across all grade according to the company. Therefore, OPEC’s third largest producer pumped light crude which is being sold at its cheapest levels in decades compared to a similar variety from rival group Saudi Arabia according to data gathered by Bloomberg.

New York-traded WTI crude futures trade at $66.70 a barrel. Meanwhile, Brent crude futures, the benchmark for oil prices outside the U.S. trades at $71.90 a barrel.